David E. Christensen - Page 5

                                        - 5 -                                         
          relating to the tax liability at issue, has met his                         
          substantiation requirements, maintained records, and cooperated             
          with the Secretary’s reasonable requests for documents,                     
          witnesses, and meetings.2                                                   
               In this case, petitioner bears the burden of proof because             
          he did not: (1) substantiate his expenses; (2) maintain the                 
          required records; and (3) cooperate with respondent’s requests.             
          Sec. 7491(a); see Higbee v. Commissioner, 116 T.C. 438, 440-441             
          (2001).                                                                     
          A.   1997                                                                   
               1.   Section 6201(d)                                                   
               If a taxpayer asserts a reasonable dispute with respect to             
          any item of income reported on a third-party information return             
          and the taxpayer has fully cooperated with the Secretary, the               
          Secretary has the burden of producing reasonable and probative              
          information concerning that deficiency in addition to the                   
          information return.  Sec. 6201(d).  In this case, petitioner did            
          not fully cooperate with respondent.  Therefore, the Court                  
          concludes respondent does not have the burden of production under           
          section 6201(d) for the 1997 tax year.                                      




               2 Sec. 7491 applies to all years at issue because the                  
          examination of petitioner’s returns for all years at issue began            
          after July 22, 1998, the effective date of sec. 7491.                       





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011